Corporate America finds today’s political environment more challenging than 2020’s, survey reveals
A new survey by The Conference Board has revealed that close to 60% of corporate America leaders think that compared to four years ago, today’s political environment is more difficult to navigate.
A member-driven think tank, the non-partisan, not-for-profit The Conference Board was founded in 1916.
According to the corporate executives surveyed, the top factors for the challenging environment include polarization among policymakers and the electorate, with 71% of survey respondents pointing to the former factor and 60%, to the latter one.
The respondents polled said another major source of the difficulty is the staff. Fourty-eight percent indicated that social and political matter demands from their employees are increasing, aggravating the situation.
“In today’s highly polarized environment that’s rife with misinformation, companies need to serve as trusted sources—especially for employees,” report author and senior researcher at The Conference Board, Merel Spierings, said. “Organizations can consider efforts that go beyond encouraging employees to vote; a more comprehensive initiative can include educating them about the democratic process, the implications of public policy decisions, and the impact of their own participation in the political process.”
International law firm Steptoe LLP collaborated with The Conference Board on the production of the report. Close to 100 corporate executives, primarily government relations and legal, from large US and global multinational corporations participated in the survey.
Additional findings include:
- Most companies have become more picky about taking public stands on hot topics since 2020.
- In the political and social issues they address, 60% of companies have gone more selective.
- There are now clearer criteria and processes established by 40% of companies for the addressal of such issues.
- A core group of cross-functional execs has been established by 29% of companies for taking the lead in the addressal of the issues.
- There are now companies that have stopped addressing these issues altogether: 12% of the company leaders said their company no more takes a public stand on hot-button topics.
- Thirty-six percent of the respondents said they were seeing their companies taking fewer stands on the issues in the future.
“As companies evaluate whether to take stands on contentious social and political issues, their criteria for responding should include more than whether the issue relates to the company’s core values,” The Conference Board ESG Center managing director Matteo Tonello said. “Having that be the sole determinant risks creating a virtually unlimited license (and perceived obligation) to take stands.”
“Other important factors to consider include the issue’s connection with the business and the ability of the company to make an impact.”
Photo by Hunters Race on Unsplash
